Kosmos Energy (NYSE:KOS) Trading Down 8.6% - Time to Sell?

Key Points

• Kosmos Energy's stock price fell 8.6%, closing at $1.97 after trading as low as $1.97, and experience a significant decline in trading volume.
• Goldman Sachs lowered their target price from $3.50 to $3.00, maintaining a "buy" rating, while other analysts have issued mixed ratings, resulting in an average rating of "Hold" with a target price of $4.93.
• Kosmos Energy reported a loss of ($0.22) EPS for the last quarter, missing estimates, with revenue of $290.43 million, falling short of analyst predictions of $338.23 million.

Kosmos Energy Ltd. (NYSE:KOS - Get Free Report) traded down 8.6% during mid-day trading on Friday . The stock traded as low as $1.97 and last traded at $1.97. 3,673,514 shares were traded during mid-day trading, a decline of 64% from the average session volume of 10,169,681 shares. The stock had previously closed at $2.15.

Wall Street Analyst Weigh In

Several research analysts have issued reports on the company. The Goldman Sachs Group dropped their price target on Kosmos Energy from $3.50 to $3.00 and set a "buy" rating on the stock in a report on Monday, May 19th. Benchmark reaffirmed a "hold" rating on shares of Kosmos Energy in a report on Thursday, June 5th. Wall Street Zen raised Kosmos Energy to a "sell" rating in a report on Friday, May 16th. Finally, Mizuho dropped their price target on Kosmos Energy from $4.00 to $3.00 and set a "neutral" rating on the stock in a report on Tuesday, May 13th. One investment analyst has rated the stock with a sell rating, three have assigned a hold rating and three have issued a buy rating to the company's stock. According to data from MarketBeat, the stock has an average rating of "Hold" and a consensus target price of $4.93.

Kosmos Energy Stock Performance

The firm's 50 day simple moving average is $2.00 and its 200-day simple moving average is $2.22. The company has a debt-to-equity ratio of 2.59, a quick ratio of 0.40 and a current ratio of 0.76. The company has a market capitalization of $886.71 million, a price-to-earnings ratio of -61.48 and a beta of 1.49.

Kosmos Energy (NYSE:KOS - Get Free Report) last announced its earnings results on Monday, August 4th. The oil and gas producer reported ($0.19) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.06) by ($0.13). Kosmos Energy had a negative net margin of 0.80% and a negative return on equity of 0.63%. The firm had revenue of $393.52 million for the quarter, compared to analyst estimates of $444.26 million. Analysts expect that Kosmos Energy Ltd. will post 0.42 EPS for the current year.

Insider Buying and Selling at Kosmos Energy

In other news, Director John Douglas Kelso Grant sold 27,923 shares of the company's stock in a transaction on Thursday, June 5th. The shares were sold at an average price of $1.81, for a total value of $50,540.63. Following the transaction, the director directly owned 29,921 shares of the company's stock, valued at approximately $54,157.01. This represents a 48.27% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Company insiders own 2.02% of the company's stock.

Hedge Funds Weigh In On Kosmos Energy

A number of hedge funds have recently modified their holdings of KOS. Stifel Financial Corp boosted its holdings in Kosmos Energy by 24.9% in the fourth quarter. Stifel Financial Corp now owns 19,711 shares of the oil and gas producer's stock worth $67,000 after purchasing an additional 3,932 shares in the last quarter. Cerity Partners LLC lifted its stake in Kosmos Energy by 17.0% during the first quarter. Cerity Partners LLC now owns 45,840 shares of the oil and gas producer's stock worth $105,000 after purchasing an additional 6,649 shares during the period. Vanguard Personalized Indexing Management LLC lifted its stake in Kosmos Energy by 34.1% during the second quarter. Vanguard Personalized Indexing Management LLC now owns 27,089 shares of the oil and gas producer's stock worth $47,000 after purchasing an additional 6,888 shares during the period. Moors & Cabot Inc. increased its holdings in shares of Kosmos Energy by 3.6% during the first quarter. Moors & Cabot Inc. now owns 217,450 shares of the oil and gas producer's stock worth $496,000 after buying an additional 7,500 shares in the last quarter. Finally, Public Employees Retirement System of Ohio increased its holdings in shares of Kosmos Energy by 53.2% during the second quarter. Public Employees Retirement System of Ohio now owns 24,103 shares of the oil and gas producer's stock worth $41,000 after buying an additional 8,371 shares in the last quarter. 95.33% of the stock is owned by institutional investors and hedge funds.

Kosmos Energy Company Profile

Kosmos Energy Ltd., together with its subsidiaries, engages in the exploration, development, and production of oil and gas along the Atlantic Margins in the United States. The company's primary assets include production projects located in offshore Ghana, Equatorial Guinea, and the U.S. Gulf of Mexico, as well as gas projects located in offshore Mauritania and Senegal.